45i/2 Federa! Register/ Vol. 66, No. 11 / V/ednesday; January 17, 2001 /Rules and Regulations
<br />beyond the scope of today's rulemaking.
<br />However, we do not agree that the
<br />section 404 program is inconsistent with
<br />federalism principles. Controlling [he
<br />impacts of pollution and protecting
<br />natural resources has long been a matter
<br />of joint Federal and State concern, and
<br />the Federal government long has
<br />legislated in the field of environmental
<br />pollution control and resource
<br />protection. Section 404 does not
<br />constitute conventional land use
<br />planning or zoning, but instead is a form
<br />of environmental protection and
<br />pollution control that leaves the
<br />ultimate determination of land use to
<br />State and local authorities consistent
<br />with Federal pollution control
<br />requirements. In a case involving
<br />impacts of mining on Federal lands, the
<br />U.S. Supreme Court expressed the
<br />distinction this way: "Land use
<br />planning in essence chooses particular
<br />uses for the land; environmental
<br />regulation, at its core, does not mandate
<br />particulaz uses of the land but requires
<br />only that, however the land is used,
<br />damage to the environment is kept
<br />within prescribed limits." (Cnlifornio
<br />Coastal Commission v. Granite Rock
<br />Co., 480 U.S. 572, 587 (1987)). Section
<br />404 does not dictate the particular use
<br />for a parcel of property; it regulates the
<br />manner in which the proposed use can
<br />be accomplished by avoiding andior
<br />mitigating the environmental impacts of
<br />a discharge of dredged or fill material
<br />into waters of the U.S.
<br />One commenter argued that the
<br />proposed rule unlawfully expanded
<br />Constitutional limits to the Corps'
<br />ability to protect biological resources, by
<br />including protection of habitat with
<br />significant biological value but little or
<br />no commercial value. The commenter
<br />stated that such habitat does not involve
<br />interstate commerce, and as a result is
<br />beyond Federal powers and should be
<br />protected by State and local
<br />governments. This issue is not within
<br />the scope of today's rulemaking and
<br />raises questions about the definition of
<br />"waters of the U.S." which aze currently
<br />pending before the U.S. Supreme Court
<br />in SWANNC. In addition, nothing in
<br />today's rule limits a State or local
<br />government's ability to protect habitat
<br />and other resources.
<br />One commenter suggested that
<br />Federal regulation is not necessary
<br />because ample State and local authority
<br />exists to protect wetlands. Again, this
<br />issue is beyond the scope of today's
<br />rulemaking. We disagree about the lack
<br />of a need for a Federal presence in
<br />wetlands regulation. The Federal
<br />wetlands program both addresses
<br />interstate issues arising from wetlands
<br />protection, and helps support the States'
<br />own environmental objectives. For
<br />example, the section 404 program helps
<br />protect States from the effects that
<br />filling of wetlands in one State may
<br />have on water quality, flood control,
<br />and wildlife in another State. States
<br />with wetlands programs might
<br />coordinate closely with the Federal
<br />program, as a means of avoiding
<br />duplication and reducing any
<br />administrative burden. For example,
<br />States might choose to coordinate their
<br />environmental studies with Federal
<br />initiatives or to use Federal expertise in
<br />identification and mapping of wetlands.
<br />We also note that in the SWANCCcase,
<br />eight states filed an omicus brief
<br />explaining the benefits of 404 regulation
<br />to the states and expressing their
<br />support for such regulation (CA, IA, ME,
<br />NJ. OK, OR, VT, and WAJ.
<br />One commenter argued that no
<br />Federal reason has been demonstrated
<br />for regulating activities such as ditching
<br />and channelization, and the proposal
<br />should not be finalized until an
<br />economic analysis is completed that
<br />supports a valid Federal reason to
<br />"expand" the Corps' authority. Another
<br />commenter noted that the NMA
<br />decision has forced a number of States
<br />to incur significant financial costs by
<br />acting to stem further wetlands
<br />destruction, and that limited funding
<br />has prevented some States from
<br />stepping into the post-NMA loophole.
<br />We note that today's rule does not
<br />regulate on the basis of ditching and
<br />drainage activities, but instead on the
<br />presence of a discharge of dredged
<br />material into waters of the U.S., as
<br />called for under the CWA. Today's rule
<br />does not expand the scope of CWA
<br />section 404 program jtn•isdiction, nor
<br />establish a new program or new
<br />required processes affecting the
<br />regulated community. For these reasons,
<br />we do not agree that today's rule
<br />requires an economic analysis such as
<br />that called for by the commenter.
<br />We note that many Federal
<br />environmental programs, including
<br />CWA section 904, were designed by
<br />Congress to be administered at the State
<br />or Tribal level whenever possible. The
<br />clear intent of this design is to use the
<br />strengths of the Federal and State and
<br />Tribal governments in a partnership to
<br />protect public health and the Nation's
<br />resources. EPA has issued regulations
<br />governing State and Tribal assumption
<br />of the section 404 program (40 CFR part
<br />233). The relationship between EPA and
<br />the States and Tribes under assumption
<br />of the section 404 Program is intended
<br />to be a partnership. With asstmption,
<br />States and Tribes assume primary
<br />responsibility for day-to-day program
<br />operations. EPA is to provide consistent
<br />environmental leadership at the
<br />national level, develop general program
<br />frameworks, establish standazds as
<br />required by the CWA, provide technical
<br />support to States and Tribes in
<br />maintaining high quality programs, and
<br />ensure national compliance with
<br />environmental quality standards.
<br />Currently two States (New Jersey and
<br />Michigan) have assumed the section 404
<br />program.
<br />One Tribal commenter felt that the
<br />proposed rule impinges on Tribal
<br />sovereignty, in that it does not allow
<br />Tribal decisions to undertake ditching
<br />activities for flood control without
<br />Federal review. This commenter also
<br />contended that the agencies did not
<br />comply with Executive Order 13084
<br />which would have required that the
<br />agencies consult with the Tribes on the
<br />proposed rule under certain
<br />circumstances. The commenter stated
<br />that the agencies' conclusion that the
<br />proposed rule will not significantly
<br />effect Indian communities nor impose
<br />significant compliance costs on Indian
<br />Tribal governments is erroneous. As
<br />mentioned above, today's rule does not
<br />change program jurisdiction. In
<br />addition, it does not create any new
<br />formal process. In fact, unlike the
<br />proposal, the final rule does not employ
<br />a rebuttable presumption, and also has
<br />been clarified to expressly provide that
<br />it does not shift any burden in any
<br />administrative or judicial proceeding
<br />under the CWA. We thus believe the
<br />rule does not create an impingement [o
<br />Tribal sovereignty or significantly affect
<br />Tribal communities.
<br />IV. Administrative Requirements
<br />A. Paperwork Reduction Act
<br />This action does not impose any new
<br />information collection burden or alter or
<br />establish new record keeping or
<br />reporting requirements. Thus, this
<br />action is not subject to the Paperwork
<br />Reduction Act.
<br />B. Executive Order 72866
<br />Under Executive Order 12866 (58 FR
<br />51735, October 4, 1993), we must
<br />determine whether the regulatory action
<br />is "significant" and therefore subject to
<br />review by the Office of Management and
<br />Budget (OMB) and the requirements of
<br />the Executive Order. The Order defines
<br />"significant regulatory action" as one
<br />that is likely [o result in a rule that may:
<br />(1) Have an annual effect on the
<br />economy of 5100 million or more, or
<br />adversely affect in a material way the
<br />economy, a sector of the economy,
<br />productivity, competition, jobs, the
<br />environment, public health or safety, or
<br />
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